SYNNEX isn’t seeing much of an economic slowdown as it guided revenue and earnings per share higher for the third quarter. The company has surprised on estimates 3 out of the last 4 quarters by 7.55%. SYNNEX has a forward P/E of 9.03.

Company Description

SYNNEX Corporation (SNX) services resellers and original equipment manufacturers (OEMs) in regions around the world.

The company, a Zacks #1 Rank (Strong Buy), distributes IT systems, peripherals, system components, software and networking equipment to more than 15,000 resellers throughout the United States, Canada and Mexico for OEM suppliers such as Hewlett Packard (HP), IBM (IBM), Intel (INTC), and Microsoft (MSFT).

SYNNEX Beat Wall Street Estimates for the Second Quarter by 7.69%

On June 26, SYNNEX reported second quarter earnings that surprised on estimates by 7.69%, or 4 cents per share. Net income rose 26% to $18.5 million, or 56 cents per share, from $14.7 million, or 45 cents per share in the second quarter of 2007.

The company had previously forecast a range 51 to 53 cents per share. Analysts were in the middle of that range, expecting 52 cents per share.

Revenues grew 11% to $1.878 billion compared to $1.685 billion in the year ago period.

“Our second quarter marked several important events for SYNNEX,” said Robert T. Huang, President and Co-Chief Executive Officer.

“We closed our New Age Electronics acquisition in April and I would like to commend our integration team on an expeditious integration with minimal disruption to our New Age Electronics customers and vendors.”

SNX Provides Third Quarter Guidance

SYNNEX expects third quarter earnings per share to be in the range of 56 to 58 cents per share. Net income is forecast to be in the range of $18.7 million to $19.4 million. Revenues are projected to be in the range of $1.92 billion to $1.99 billion.

Consensus Estimates Rising for the Third Quarter and the Full Year

As expected given the company provided guidance, brokerage analysts raised estimates for both the third quarter and the full year. In the last month, third quarter estimates rose to 57 cents from 55 cents- in the middle of the company’s forecast range.

For the full year, four out of four covering analysts raised in the last 30 days to $2.36 from $2.25 per share.

Value Fundamentals

SYNNEX’s forward P/E is 9.03, under the industry average of 14.11. Its price-to-book (P/B) is 1.13, also under the industry average of 1.96. The company has a five year average return on equity (ROE) of 11.27%.

Content Courtesy: Zacks Investment Research

#1 Ranked Stocks Highlight Archive
To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

| Blog Home| VitalStocks Home
View original at: VitalStocks Blog

1. (QCOM) – QUALCOMM – ROE of 20%, four times the industry average of 5%QUALCOMM Inc. (QCOM) is holding up well in a bearish market, trading near a 52-week...
2. (UNF) – UniFirst – surprised on estimates the last three quarters on average of 22.37%UniFirst reported a record third quarter as the uniform manufacturing and laundry business remains hot....
3. (WW) – Watson Wyatt Worldwide – solid ROE of 17%, far above industry average of 10%Watson Wyatt Worldwide, Inc. (WW), which recently acquired Argentine human-resources and financial-services firm Marcu &...
4. (WOR) – Worthington Industries – surprised on estimates two out of the last four quarters on average of 20.59%Worthington Industries reported record sales for the fourth quarter and the year as the company...
5. (AVP) – Avon Products – attractive ROE of 108%, which is much higher than the industry average of 13%Avon Products, Inc. (AVP) boasts an attractive ROE of 108%, which is much higher than...
6. (MA) – Mastercard Inc – ROE of 30%, squashing the industry average of 9%Mastercard Incorporated (MA), a Zacks #1 (Strong Buy) company, continues to reward investors with both...

Search Posts by Tag: HP | IBM | INTC | MSFT | ROE | SNX | Diversified Computer Systems | Technology

RSS Feeds by Tag: HP | IBM | INTC | MSFT | ROE | SNX | Diversified Computer Systems | Technology |

Other Posts by: Shawn | RSS Feed for this author